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| linh3203 |
 Posted: Mon Sep 10, 2007 3:28 pm Post subject: Retirement Plan |
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Investing Associate
Joined: 10 Sep 2007
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Well my father has a 401k but does not have much money in it...he started working late...and i want him to have the most gains he can for the last couple years before retirement
Is investing in risky mutual funds a good 5 to 6 year investment? |
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| Dave Rathbun |
| Posted: Mon Sep 10, 2007 4:30 pm Post subject: |
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CFO
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| Usually the closer you get to needing your money, the more conservative your investments become. If you are 21 you can ride out the wild swings the market has been through over the past decade and still come out on top. If you are going to retire tomorrow, most folks are happier knowing they're not going to lose their nest egg. |
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| linh3203 |
| Posted: Mon Sep 10, 2007 5:17 pm Post subject: |
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Investing Associate
Joined: 10 Sep 2007
Posts: 40
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1777.16 e$
Net worth: 14,481.70
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Monthly Return: 0.48%
Trades this month: 3
Churn Rate: 0.00%Items
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| well he gots 5-6 more years till retirement so is that too little time to go risky? |
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| Dave Rathbun |
| Posted: Mon Sep 10, 2007 6:29 pm Post subject: |
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CFO
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Retirement is one thing. When will he need the funds?
If you need the funds in that same time frame, most folks would probably be more conservative. I am not a financial advisor by any means, but if I had only 5 years until I needed the money I would be looking at a mix of cd's (which are paying over 5% per year right now if you can find the best rates) and perhaps a small portion in an index fund. An index fund will go up if the market goes up, down if the market goes down, but is less risky than trying to pick individual stocks.
These are just my opinions. Ultimately it comes down to what he is comfortable doing. Several years back the markets lost a huge percentage of their value in a very short time, and they're still not back up to where they were. Are you (is he) willing to risk that happening again in the next few years? |
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| linh3203 |
| Posted: Thu Sep 13, 2007 7:32 am Post subject: |
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Investing Associate
Joined: 10 Sep 2007
Posts: 40
This Month: 0
1777.16 e$
Net worth: 14,481.70
Portfolio Value: 9,637.54
Monthly Return: 0.48%
Trades this month: 3
Churn Rate: 0.00%Items
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| he is less of a risky person...he jsut wants to stick with the mutual funds that only gives 2-3% interest...for him thats fine...as long as he doesnt have to risk losing...he is letting me control a small portion of it....so i wanna find the best way to use it...it is in his 401k should i be risky and get risky mutual funds? |
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| Dave Rathbun |
| Posted: Thu Sep 13, 2007 8:16 am Post subject: |
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CFO
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| You can get 5% on CD's now. I would not invest in mutual funds if he's only looking for 2-3%. Do you know what a CD ladder is? |
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| Colli |
| Posted: Sun Nov 18, 2007 2:29 am Post subject: |
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Investing Sr. Associate
Joined: 18 Nov 2007
Posts: 57
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| With a 5-6 year retirement horizon, I would say CD's are your best bet - especially considering the current turmoil in the world of finance. Don't get greedy - just look at what being greedy did to the financial geniuses in the investment firms and banks who invested in risky mortgages recently. |
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| Staggs |
| Posted: Wed Mar 19, 2008 3:47 pm Post subject: |
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Investing Sr. Associate
Joined: 19 Jun 2007
Posts: 141
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Location: Wisconsin
3884.82 e$
Net worth: 14,934.82
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| Its to late for him, hard to make up lost time. Time is your friend if you have a lot of it and your enemy if you don't. |
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